Paxton, 021218 TXAGO, AGO RQ-211-KP

• Case Date: February 12, 2018
• Court: Texas

The Honorable Ken Paxton Attorney AGO RQ-211-KP No. RQ-0211-KP Texas Attorney General Opinion February 12, 2018          The Honorable Ken Paxton          Attorney General of Texas          ATTN: Opinion Committee          P.O. Box 12548          Re: Request for opinion on the character and treatment of assessments under the Texas PACE ("Property Assessed Clean Energy") Act (Tex. Local Gov't Code, Ch. 399) and supporting brief          Dear Attorney General Paxton:          I, the County Attorney of Williamson County whose signature is shown below, ask for an affirmative opinion on the following question of existing law:

Are the contractual assessments imposed by local governments on privately owned commercial or industrial real property or residential real property with five or more dwelling units to secure the owners' financing of permanent energy or water conserving improvements under a program adopted by the local government pursuant to the Texas PACE ("Property Assessed Clean Energy") Act, as provided for in Chapter 399, Texas Local Gov't Code, special assessments by the local government and treated in a similar manner as the real estate taxes on the property?

         Introduction and Background          This opinion request stems from the U.S. Department of Housing and Urban Development's ("HUD") Notice H 2017-01, issued on January 11,2017, which provides administrative guidance for multifamily residential properties participating in PACE programs throughout the country. The notice includes the requirements that must be met before HUD will consent to participation in a PACE program by multifamily residential properties assisted by HUD and on which it holds or guaranteed the mortgage. One such requirement in Notice H 2017-01 is an opinion from the state's attorney general that the obligations under the PACE program of that state are special assessments and treated in a similar manner as the real estate taxes. A copy of Notice H 2017-01 is attached to this brief as Exhibit A.          I ask for the Attorney General's opinion to confirm the conclusion that I believe to be self-evident in the text of the Texas PACE Act and in the terms of Williamson County's local PACE program so that our local program and other local programs across the State can be fully utilized to promote economic development and the conservation of energy and water resources in our community.          Supporting Brief          1. The Texas PACE Act          The Texas Property Assessed Clean Energy Act ("PACE Act") was passed in the 83^rd regular legislative session through Senate Bill 385 and became effective on May 15,2013, See generally Tex. Local Gov't Code Ch. 399. A copy of the PACE Act is attached to...